Most distributors provide strong manpower and cash support to the vendor’s promotional efforts. They usually also provide a range of services (such as product information, technical support, after-sales services, credit-limit) to their customers.
It is recognized that managing a distributor relationship today requires many skills outside of the normal capability and competencies of a transactional account manager.
One of a problem that is not so evident – is how to deal with a big distributor?
Big distributor is not just power, budgets, human resources and competences but also a complicated internal politics and a threat.
Big distributor has many subsidiaries with very complicated hierarchy. And it’s vendor who need to adopt it’s strategy to the policy of a «big brother”.
Big distributor is not always just benefits. Because of a big (and strong) portfolio their managers could be not very focused on your product and often negotiate for extra discounts.
In some cases a big distributor can be dangerous – just remember “A ruin problem of small supplier” from Theory of Games.
So big distributor needs special attention and special treatment.
Here what you need to start from:

1. You need to understand why they choose your product and your company. Develop the internal marketing strategy and demonstrate your benefits for them;

2. You should have your point of bearing and you USP for them – clinical excellence, unique product or Medical affair liaison;

3. If you could offer them some innovative approach to marketing that would be beneficial – develop new marketing programs;

4. If difficult to influence, try to conquer branch by branch.

5. Evaluate the merit and find a weak link;

6. Always developing – your marketing strategy, your MedAffairs liaison etc;

7. Divide and govern.

Always remember that vendor’s ability to manage and guide the distributor channel could become it’s competitive advantage or disadvantage and bears a potential of additional value to the customer.